Demand For Upstream Cotton Textile Sector To Stimulate Demand For Supply Of Downstream Textile Enterprises

In the first half of 2017,

Showing a trend of concussion, the price in July 24th was 15903 yuan / ton, a slight increase of 0.68% compared with the beginning of the year, basically maintaining the same level.

This year, the total number of state-owned cotton stores went up by 2 million 80 thousand and 500 tons in July 28th, and the turnover rate was 67.87%. At present, about 5 million 600 thousand tons of national cotton stocks are stored.

In the latter half of this national cotton storage, the turnover rate was slightly lower than that in the first half, and the paction price first increased and then decreased.

According to the comprehensive calculation, the total amount of reserve cotton in inventory and rotation is nearly 4 million tons, which can meet the demand of downstream textile enterprises before new cotton is listed, and the supply is still loose.

The difference between domestic and foreign cotton prices has been narrowed and widen since the beginning of the year, and the price of cotton has fluctuated with the expectation of supply.

Before May, cotton prices rose sharply due to the shortage of cotton in India (15065, -15.00, -0.10%), and the price differentials continued to narrow.

As the US Department of agriculture increased its output forecast, the price of foreign cotton should be callback. Its latest forecast in July raised the global cotton output by 121 thousand tons in 2016/17, and the trend of cotton continued to be weak. As of July 21st, the price difference has reached 1110 yuan / ton.

China and the US have increased domestic demand for cotton, narrowing supply and demand, and anticipate faster consumption.

The US Department of agriculture increased its consumption estimate to 8 million 165 thousand tons in the latest forecast in July, with a gap of 10 million 548 thousand tons in supply and demand, and 8 million 578 thousand tons of supply and demand gap in 2017/18. Its decline was faster than previously expected, mainly because of the rapid decline in storage and the increase in the growth of cotton consumption.

In July, the Ministry of agriculture of China also estimated the cotton consumption in 2016/17 to be increased from 100 thousand tons to 7 million 790 thousand tons, with the end of stock being reduced by 100 thousand tons to 9 million 130 thousand tons.

The price of the four yarns increased by 23.15%, 22.33%, 14.06%, 14.37%, respectively, in the first half of 2017.

The proportion of domestic yarn production increased. In the first half of 2017, domestic yarn production was 13 million 972 thousand tons, unchanged from the same period last year, and the total net imported cotton yarn was 760 thousand and 700 tons, down 3.69% from the same period last year.

At the same time, the output of cloth increased year by year. In the first half of 2017, domestic cloth output was 34 billion 600 million meters, up 4.50% over the same period last year, and the overall demand for the downstream area was getting warmer.

Downstream sales, internal and external sales weak recovery.

Exports, 2017H1 textile yarn, fabrics and products exports $53 billion 120 million, an increase of 2.17% over the same period last year, an increase of 3.90 PCT over the same period last year.

Garment exports totaled $70 billion 933 million in 1-6 months, down 0.54% from the same period last year, narrowing 8.9 PCT over the 2016 annual decline.

Domestic sales.

In the first half of 2017, clothing and shoes, hats and needles were placed above the quota.

Class sales amounted to 717 billion 170 million yuan, an increase of 5.22% over the same period, and clothing sales of 506 billion 320 million yuan, an increase of 4.64% over the same period last year.

The clothing plate inventory digestion capacity increased year by year, the total inventory of the 16 companies at the end of 2017Q1 was 22 billion 499 million yuan, an increase of 12.13% over the same period, of which 10 companies increased the turnover rate of single season year-on-year, and overall, the demand for the upstream cotton textile sector increased.

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